The Fund will invest in loans originated by Faes & Co’s own group company, F2 Finance, which was launched earlier this year.
The focus will be on funding a diversified portfolio of granular short-term mortgages secured by first mortgage against residential property in the US — lending to ‘property entrepreneurs’ active in the ‘fix & flip’ market.
The Faes & Co Income Fund is open-ended and available to accredited investors in the US, with a Cayman Islands feeder fund available for offshore investors, the Fund is also administered by Socium, with CohnReznick appointed as the Fund’s auditor.
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Christian Faes, CEO and founder of Faes & Co, commented: “The US real estate bridging finance market has undergone a recent period of disruption, where traditional institutional funders have significantly slowed their appetite for a variety of reasons— from the securitization market being ‘less open’, to regional banks that have had a flight of deposits post the SVB crisis.
“The asset class now presents a very interesting and unique opportunity for investors, It is also a very large and liquid market for building a diversified pool of asset-backed loans that provide a superior risk-adjusted return for investors.”
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